New Royal Mail boss Moya Green has blessing of the unions

Royal Mail's new chief executive has not even spent one day on the job but has
already won a notable stamp of approval – from the unions. Dave Ward, the
deputy general-secretary of the Communication Workers Union, said it was "good
to see the appointment of a person with a public sector background ".

By Graham Ruddick

8:56PM BST 27 May 2010

Union backing for Moya Greene is key given the potential stand-off brewing over plans by the coalition Government to sell a stake in Royal Mail, and a pension deficit thought to be more than £10bn.

After a testing relationship with Adam Crozier, the previous Royal Mail boss, union support of Ms Green is based on her track record in Canada's public sector. In an initial 17-year stint as a civil servant, Ms Greene oversaw significant reform in the transport system – such as the privatisation of rail freight group CN and the modernisation of the port system – while maintaining relations with trade unions.

At Canada Post, an organisation facing many of the same challenges engulfing the Royal Mail, she has overseen five years of profitability. In 2009, net income was C$281m (£183m), an increase of C$191m, despite postal volumes falling 8pc. The increase was achieved through cost-cutting and reducing employed benefits. These were secured without major union rebellions, although highly-critical websites named after Ms Greene suggest there was some anger at her decisions, such as closing a plant in Quebec.

Marc Courtois, the chairman of Canada Post, said: "While we are sorry to lose Moya, she leaves Canada Post extremely well placed to face the future."

Ms Greene herself said: "I am honoured to be joining such a great company and to be working with its customers and its people at such a momentous time in its history."

As well as a long public sector career, Ms Greene has enjoyed major roles at three of Canada's biggest private companies – Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Bombardier, the aircraft manufacturer. However, she had mixed results in the private sector, and stepped down at Bombardier in 2004 alongside Paul Tellier, the chief executive, as the share price tumbled.

She takes over Royal Mail after annual results showed a 26pc increase in operating profits but the first decline in revenues in a decade. The organisation has implemented a £2bn modernisation programme, similar to Ms Greene's in Canada, in an attempt to deal with a sharp decline in volumes.